Hero Motocorp shares slump sharply, IT raids likely weighed

New Delhi: Shares of two-wheeler maker Hero Motocorp declined sharply on Friday after Income Tax department detected some irregularities post a raid on the company.

The shares fell over 6 percent to around Rs 2,150. However, it pared some of its losses later. At 2.16 p.m., it traded 2.8 percent lower at Rs 2,231.

In late March, the Income Tax Department had conducted a search operation on the premises of Hero Motocorp in Gurugram and Delhi in connection with alleged tax evasion.

The Income Tax Department has found alleged illegal business expenses of over Rs 800 crore and Rs 60 crore unaccounted cash used to purchase land in Delhi and role of shell companies after it raided the two-wheeler crop and two other groups, according to reports.

Since the start of 2022, the shares of the company fell 10 percent, whereas 25 percent in the past one year, data showed.